There’s disagreement over just how much, and what percentage, of the money from State Question 779’s massive sales tax increase will go to public school teacher compensation.

Three groups have reached different calculations for how much it would cost to provide a $5,000 pay raise for every public school classroom teacher in Oklahoma:

$210 million – Oklahoma Deserves Better

$245 million – OCPA Impact

$300 million – Oklahoma State School Boards Association

Yet these three numbers have something in common: they’re all less than 50% of the total amount — $615 million — that 779’s supporters say the 779 tax increase will collect each year!

And the hard truth is, when you read closely 779’s fine print, it’s clear that, other than the money for the $5,000 pay raise, not one penny more of the 779 tax money is guaranteed to go to teacher compensation.

Bottom line: less than 50% of the 779 tax money is guaranteed to go to teacher compensation. Period.

The Facts: It’s shocking that 779’s supporters are trying to present as a positive that 40% of the money from 779’s sales tax increase – 40 cents of every dollar taken from working Oklahomans – would not be spent on teachers.

The reality, though, is even worse: only 39% – not 60%, as the pro-779 ad suggests – of the 779 tax money would be required to go to teacher salaries or benefits. It’s possible, though not guaranteed, this number could ultimately be higher, but there is nothing in 779’s fine print requiring more than 39% of the 779 tax money to go to teacher compensation.

Let’s clarify how we calculated 39%. Proponents of 779 say the measure will bring in $615 million in new tax money each year, via 779’s sales tax increase on working Oklahomans. According to the National Education Assoc. and the Oklahoma State Dept. of Education, there are approx. 42,027 public school classroom teachers in Oklahoma. To provide each with a $5,000 salary increase, factoring in a multiplier of .17 for FICA and other employment-related costs, would cost $245 million.

A simple division calculation reveals that the cost of providing the $5,000 teacher salary boost – $245 million – is 39% of the total 779 is projected to generate – $615 million.

245 / 615 = 39%

After the teacher pay raise dollars are taken out, this particular pot of 779 money – one of five different pots detailed in 779’s fine print – would have $123.9 million remaining.

In 779’s fine print, the only requirement for this $123.9 million is that it be spent to “otherwise address and prevent teacher and certified instructional staff shortages in the manner most suited to local district circumstances and needs.”

That’s it. No requirement to hire more teachers. No requirement to spend the money on teacher salaries, benefits or other compensation.

Experience suggests that, while some local school district officials would use these extra funds to hire more teachers or further increase teacher compensation, others would not.

Verdict: The claim by Oklahoma’s Children, Our Future is false. Only 39% of the 779 tax money is required to go to teacher compensation.

Claim #2: “Every single penny” of the 779 tax money has annual audit requirements built in.

The Facts: In its descriptions of the five different pots of 779 tax money, 779’s fine print only includes audit requirements for two of the pots – the pot from which the teacher pay raise funds will be drawn, and the pot designated for “programs, opportunities, or reforms” to improve reading, boost high school graduation rates, and “increase college and career readiness.”

The other three pots – the $118.3 million lump sum for Higher Education, the $19.9 million lump sum for Career Tech, and the $49.2 million lump sum for the State Dept. of Education – feature no audit requirements whatsoever.

After everything is tabulated, 70% of the 779 tax money will include audit requirements, while 30% will not.

Verdict: The claim by Oklahoma’s Children, Our Future is false. Only 70% of the 779 tax money includes audit requirements.

Verdict: The claim by Oklahoma’s Children, Our Future is false. Portions of the 779 tax money may be spent on administrative overhead.

Claim #4: Since 779 would be locked into the Oklahoma Constitution, the 779 tax money would be kept out of “the meddling hands of politicians.”

The Facts: Disparaging politicians and their “meddling hands” is a time-honored American tradition, practiced with great wit by Mark Twain, Will Rogers and other luminaries.

In this case, however, it’s merely a ploy to distract voters away from the fact that 779 will: (a) require all Oklahomans, regardless of income, to pay the highest permanent sales tax burden in the nation, and (b) provide state government bureaucrats and school administrators with the constitutional protection to spend up to 60% of the 779 tax money on stuff other than teacher compensation.

Ultimately, whether 779 is approved or rejected on the ballot may come down to Oklahoma voters determining which group they trust the most … or, perhaps, distrust the least: publicly-elected politicians at the state Capitol, or un-elected state government bureaucrats and school administrators.

For many Oklahoma voters, that may be a tough call. Either way, the claim by Oklahoma’s Children, Our Future is blatantly misleading.

Oklahoma consumers would be able to purchase wine and high-strength beer in grocery and convenience stores, which would be a big plus for liberty. Want to be able to buy wine and six-point beer at the grocery store? Here’s your chance. The reform could result in certain grocers doing business in Oklahoma after holding out for years because of the state’s longstanding prohibition on grocers offering such products. As well, certain beers that have not previously been offered in Oklahoma for similar reasons – Fat Tire, anyone? – could now become available from in-state retailers. Also, traditional liquor stores would be able to refrigerate products, as well as offer products they are currently prohibited from selling, such as mixers, corkscrews, and the like.

If it fails (“NO” vote):

The status quo for Oklahoma’s alcohol retail laws would remain in place. To be sure, if passed, SQ 792 would result in disruption within Oklahoma’s alcohol industry. Some are concerned that passage of SQ 792 could result in unintended negative consequences in the price point charged by distributors, particularly in how this might affect the restaurant industry. Still, if SQ 792 fails to pass, the ability of Oklahoma citizens to access a host of products would continue to be restricted.

State Question 790: Allow the Ten Commandments monument back onto state government property

If it passes (“YES” vote):

Oklahoma’s state government will be able to put the Ten Commandments monument back on state property. The monument was removed from the state Capitol grounds in 2015 following a lawsuit by the American Civil Liberties Union (ACLU). Will likely dramatically reduce the likelihood of any successful lawsuits to restrict the use of state taxpayer dollars currently going toward providing public services via private entities that have religious affiliation, such as foster care, prison ministries, hospitals (such as INTEGRIS Baptist Medical Center, Mercy Hospital, St. John’s Medical Center, St. Francis Hospital, etc.), private universities (such as Oklahoma Baptist University, Southern Nazarene University, Oklahoma Christian University, etc.), homeless ministries, scholarships for children with disabilities, parental education choice programs, and more. Would also likely reduce the likelihood of lawsuits filed against local public school districts over such activities as prayer at school athletic events.

If it fails (“NO” vote):

The status quo in such matters will prevail. The Oklahoma Constitution would retain what is referred to as its “Blaine Amendment. ” In the late 19th Century and early 20th Century, many states enacted similar amendments to their state constitutions, mostly in an anti-Catholic effort. Such amendments are antiquated and have their origins in deep prejudice.

State Question 781: Directs cost-savings from sentencing reforms to local governments

If it passes (“YES” vote):

If SQ 780 passes, state prisons across Oklahoma would be expected to house fewer inmates, while county jails could be expected to house more, as offenders are housed closer to their families and to local treatment programs. SQ 781 would help ensure that a portion of the cost savings realized by state prisons would be passed on to county facilities.

If it fails (“NO” vote):

The systemic, cost-saving reform in SQ 780 would be severely frustrated in the implementation process. One of the key goals of SQ 780 – to allow local officials more flexibility to address local factors contributing to mental health and substance abuse issues – would be difficult, if not impossible, to realize.

State Question 780: Reduce taxpayer costs by changing sentencing from felony to misdemeanor for simple drug possession, other nonviolent crimes

If it passes (“YES” vote):

The proposal will likely result in significant cost savings for the taxpayers who fund Oklahoma’s criminal justice system, particularly in the area of incarceration and imprisonment. Similar reforms in other states, most notably in Texas, have resulted in major cost savings. Many proponents of the reform suggest such a move would allow Oklahoma’s criminal justice system to focus more on those individuals “who we are truly afraid of,” rather than those “who we are merely mad at.” By no longer classifying simple drug offenses as felonies, harsh prison sentences for such crimes are expected to be reduced.

If it fails (“NO” vote):

Oklahoma’s judicial and corrections system will continue to treat simple drug offenses in what many believe to be an overly excessive manner. The status quo on simple drug offenses in Oklahoma will hold firm. Many believe this status quo, as opposed to an emphasis on drug courts and rehabilitation, to be too often a determining factor in Oklahoma’s abnormally high rate of female and minority incarcerations. Such negative trends have been credited with the breakup of many families up and down the socioeconomic scale throughout Oklahoma.

A massive tax increase on working Oklahoma families, entrepreneurs and private-sector job creators of all sizes. Will create a new, permanent 1% statewide sales tax, on top of the existing 4.5% state sales tax rate and county and municipal sales taxes. Oklahomans, on average, will pay a total state-and-local sales tax burden of 9.8%, the highest of any U.S. state. The average tax increase statewide, per household, will likely exceed $420 every year. Proponents estimate the tax increase will bring in an additional $615 million every year, with a portion of the funds going toward a $5,000 teacher pay raise. However, over 40% of the funds from the tax increase will be pre-dedicated for things besides teacher salaries, including nearly 20% – about $115 million – for the state’s public higher education system, with zero accountability. FYI: To provide a $5,000 pay raise for every classroom public school teacher statewide costs only about $245 million, less than half what SQ 779’s sales tax increase is expected to bring in.

If it fails (“NO” vote):

Oklahoma taxpayers will have been shielded from being forced to pay the nation’s highest sales tax burden. Pressure will hopefully increase on lawmakers at the Oklahoma Capitol to provide a teacher salary increase without increasing taxes at a time when the state’s economy is still reeling from depressed oil and natural gas prices. Superintendents in public school districts, as well as bureaucrats in higher education and Career Tech, will hopefully feel more pressure to be as efficient with the taxpayer dollars they already receive as the Oklahomans who paid those taxes in the first place.

The Oklahoma Supreme Court today received a fresh challenge to a proposed ballot measure that, if approved by voters, would increase the sales tax burden on Oklahoma families to the highest in the U.S.

Representatives of OCPA Impact, the group that filed the court challenge, said the proposal does not comply with state law and should not be placed on the statewide ballot later this year.

Initiative Petition 403, also known as State Question 779, has been championed by University of Oklahoma President David Boren and others as a means to increase teacher salaries. The proposal would levy a new, 1% sales tax that is expected to increase tax collections on Oklahomans by around $600 million a year.

When combined with existing state, county and municipal sales taxes, the proposal would raise the average total sales tax burden across the state to 9.78%, the highest of any state in the nation. Oklahoma already ranks sixth-highest nationally in combined state-and-local sales taxes. [LINK]

“Oklahomans want a teacher pay raise, not a tax increase, but President Boren’s proposal would impose a major tax increase on families, individuals and small businesses at a time when tens of thousands of Oklahomans have lost work because of the ripple effects of falling oil prices,” said Dave Bond, CEO of OCPA Impact, a nonpartisan advocacy organization in Oklahoma City.

The group is specifically challenging the gist of the initiative petition. The gist is the summary of the measure that appears at the top of every page of signatures gathered in support of the proposal.

The gist of Initiative Petition 403 fails to describe key aspects of the proposal, is inaccurate in its description of other elements of the proposal, and contains wording that could potentially be misleading or confusing to voters about the proposal’s effects, according to the challenge filed today.

In January, the Oklahoma Supreme Court ruled in favor of the constitutionality of Initiative Petition 403, following a separate challenge also filed by Bond and OCPA Impact.

The majority opinion of the court specifically did not reach the question of whether the gist complied with state law. However, the minority opinion stated that the gist was “dead on arrival.” The minority opinion also stated that, “The gist or proposed ballot title deceives potential signatories and potential voters.” [LINK]

Bond explained that the proponents of Initiative Petition 403 were on notice, following the Court’s January ruling, of the gist’s potential legal problems. The proponents opted to go forward without refiling the gist.

In Oklahoma, challenges to the gist of any proposed initiative petition have traditionally been filed after signatures have been gathered and before a costly election is held.

As recently as 2007, the Oklahoma Supreme Court ruled after signatures were gathered but before the election was held that a measure could not advance to the ballot due to deficiencies in the gist.

The gist fails to explain that the sales and use taxes imposed by the proposal will be in addition to sales and use taxes already levied.

It suggests funds raised by the new tax will be used to improve college affordability, but the proposal in no way requires this.

It inaccurately states that funds cannot be used by school districts for administrative salaries, when the measure only prohibits funds from being used to increase superintendent salaries or add new superintendent positions.

It fails to notify voters how the new monies will be allocated, though over 40% of funds would go toward areas other than teacher salaries, with nearly 20% to higher education.

It does not mention how the proposal would alter the balance of appropriations authority between the state Board of Equalization and the Legislature.

It does not notify voters of when salary restrictions and audit requirements related to use of the new monies would and would not apply, including that the proposal contains no audit requirements for funds directed to the State Department of Education, the Department of Career and Technology Education, or the State Regents for Higher Education.

In addition to pointing out the insufficiencies of the gist, the challenge filed today states that the proposal’s ballot title should be changed.

The ballot title is the 200-words-or-less summary of a proposal that voters see on the ballot. Bond said Initiative Petition 403’s ballot title, as currently written, is insufficient for many of the same reasons as the gist.

“Voters shouldn’t be led to believe this proposal merely asks them to spare a penny that they might find in their couch cushions or underneath the floor mats in their car, but that’s more or less how it’s currently worded,” Bond said.

During Oklahoma’s 2016 legislative session, which ended in May, OCPA Impact was the only group advocating at the state Capitol for a pay raise for classroom teachers in Oklahoma public schools.

To provide a $5,000 pay raise for every classroom teacher statewide would cost about $245 million. OCPA Impact has previously presented over $750 million in options for funding the teacher pay raise without increasing taxes or reducing core services. [LINK]

“A substantial, across-the-board pay raise for Oklahoma teachers is long overdue, but it can and should be provided without increasing taxes on working Oklahomans, including teachers, many of whom are already struggling to make ends meet,” Bond said.

New public opinion data suggests a substantial number of Oklahoma voters prefer to see a teacher pay raise funded with cost savings from making other state government spending more efficient, rather than a sales tax increase.

The survey data also indicates if state lawmakers had provided a $5,000 pay raise for Oklahoma teachers in the recent legislative session, public support would likely plummet for a measure on the ballot this fall to hike sales taxes in order to increase teacher salaries.

The surveys in question were conducted by telephone in 11 state House districts, May 16-19. The surveys produced data from 3,461 individual respondents in rural and metropolitan areas across the state.

In seven of the districts surveyed, respondents were likely general election voters. In the other four districts, respondents were likely Republican primary voters.

In each of the 11 legislative districts, GOP incumbents are facing off this year against challengers in the primary or general election.

Several trends stood out from the surveys:

-Voters overwhelmingly believe teachers should receive a pay raise. This is in line with a statewide survey last year that indicated over 97% of Oklahoma voters supported a teacher salary increase. (LINK)

-Support was initially strong among respondents for a proposal on the statewide ballot later this year to fund a teacher pay raise and other spending increases by raising Oklahoma’s sales tax burden to the highest of any U.S. state. The ballot proposal, State Question 779, is championed by Univ. of Oklahoma President David Boren and others.

-Nonetheless, voters strongly preferred a teacher pay raise be funded using cost savings from reductions in nonessential state spending, rather than a tax increase. This reflects another statewide survey, released Mar. 2, which found voters wanted teacher pay raises to be financed with existing taxpayer dollars instead of a tax increase. (LINK)

-If state lawmakers had provided a $5,000 teacher pay raise during the legislative session, which ended in May, voter support for SQ 779 would likely fall enough for the ballot measure to be defeated. The prospect of funding a teacher pay raise without a tax increase resulted in an average drop in voter support for SQ 779 of over 18 percentage points.

During the course of the survey, a large number of respondents appeared to change their mind as to whether they would vote to approve the sales tax increase for teacher pay.

In all 11 surveys, a majority or strong plurality of voters initially indicated their intention to vote for President Boren’s tax increase on the ballot.

However, in 10 of the 11 surveys, once voters were presented with the possibility of state lawmakers providing a $5,000 teacher pay raise without increasing taxes, a majority or strong plurality indicated their intention to vote against President Boren’s ballot proposal.

Only in the survey of voters in House District 21 did support for SQ 779 not fall below opposition after respondents were given an alternative to the tax increase.

HD 21 is located in Bryan County, on the Texas border. Numerous reports have indicated teacher salaries in Texas are roughly $5,000 higher, on average, than in Oklahoma.

As well, Texas teachers typically keep a higher percentage of their paychecks than Oklahoma teachers, due to the lack of an individual income tax in Texas. Plus, the sales tax burden in Texas already falls below Oklahoma’s existing sales tax burden, even without President Boren’s proposed sales tax increase. In addition, grocery purchases in Texas are not assessed sales tax, while in Oklahoma they are.

In all 11 surveys, respondents were asked the following questions:

-Would you support or oppose giving Oklahoma public school teachers a pay raise this year?

District

Support

Oppose

Undecided

HD 2

75.1%

12.7%

12.2%

HD 21

81.2%

13.9%

4.9%

HD 36

76.1%

17.8%

6.1%

HD 43

66.2%

17.8%

15.9%

HD 50

66.3%

21.3%

12.4%

HD 51

74.5%

16.8%

8.8%

HD 62

79.2%

15.6%

5.3%

HD 63

72.7%

19.4%

7.9%

HD 65

64.2%

22.8%

12.9%

HD 69

72.6%

18.2%

9.2%

HD 70

80.2%

13.6%

6.2%

Avg.

73.4%

17.2%

9.2%

-When you go to vote this November, would you support or oppose a proposal on the ballot for a new, one-cent statewide sales tax increase to fund a $5,000 teacher pay raise?

District

Support

Oppose

Undecided

HD 2

54.0%

34.3%

11.7%

HD 21

67.3%

27.4%

5.3%

HD 36

62.3%

29.1%

8.5%

HD 43

51.5%

39.2%

9.3%

HD 50

53.1%

36.5%

10.4%

HD 51

50.5%

37.6%

11.9%

HD 62

55.8%

32.8%

11.5%

HD 63

60.2%

34.7%

5.0%

HD 65

50.2%

39.8%

10.1%

HD 69

48.8%

38.9%

12.3%

HD 70

57.9%

32.1%

10.0%

Avg.

55.6%

34.7%

9.6%

-Would you rather see a teacher pay raise be funded by a tax increase or by cost savings from reducing spending on non-essential areas of Oklahoma’s state government?

District

Tax Increase

Cost Savings

Undecided

HD 2

25.9%

64.7%

9.3%

HD 21

19.7%

66.8%

13.5%

HD 36

18.6%

70.0%

11.3%

HD 43

24.1%

65.4%

10.5%

HD 50

17.8%

73.4%

8.8%

HD 51

17.8%

71.9%

10.3%

HD 62

26.0%

60.0%

14.0%

HD 63

23.0%

66.2%

10.8%

HD 65

20.7%

66.5%

12.7%

HD 69

23.9%

65.9%

10.2%

HD 70

30.4%

62.5%

7.1%

Average

22.5%

66.6%

10.8%

-The Oklahoma Legislature is considering funding a $5,000 teacher pay raise with cost savings instead of with a tax increase. If the Legislature does this before you go to vote this November, would you support or oppose a proposal on the ballot for a new, statewide sales tax increase to fund an additional teacher pay raise?

District

Support

Oppose

Undecided

HD 2

37.1%

47.6%

15.3%

HD 21

48.8%

40.6%

10.6%

HD 36

37.7%

49.4%

13.0%

HD 43

35.7%

54.5%

9.9%

HD 50

29.2%

56.2%

14.6%

HD 51

33.5%

52.1%

14.4%

HD 62

40.7%

44.5%

14.8%

HD 63

37.2%

48.9%

13.9%

HD 65

38.8%

48.5%

12.7%

HD 69

32.0%

53.1%

15.0%

HD 70

40.5%

45.0%

14.5%

Average

37.3%

49.1%

13.5%

The surveys were conducted by Clout Research on behalf of OCPA Impact, Inc., a nonpartisan advocacy organization based in Oklahoma City.

“Oklahoma families don’t want to pay higher taxes, they just want the teachers who work with their children in the classroom every day to receive a meaningful pay raise,” said Dave Bond, OCPA Impact’s CEO. “At a time when thousands of Oklahomans statewide have lost employment because of depressed oil prices, raising taxes is not the answer.”

During Oklahoma’s 2016 legislative session, OCPA Impact was the only organization to advocate at the state Capitol for a salary increase for public school teachers. To provide a $5,000 pay increase for every classroom teacher statewide would cost about $245 million.

To finance the pay raise, OCPA Impact proposed over $750 million worth of various cost savings options from the reform of wasteful or nonessential spending by state government entities.

These included the elimination of all or a portion of the estimated $199 million in subsidies paid out annually by state government to wind energy companies, as well as a portion of the roughly $43 million in investment earnings collected each year by the Tobacco Settlement Endowment Trust (TSET), which spends much of that money on advertising. (LINK)

“Even in the best-run state governments across the country, people know there’s still some waste and some inefficient spending on things that aren’t core priorities,” Bond said. “The fact is, most Oklahomans consider public schools a core funding priority, with good teachers being one of the most precious commodities of all.

“To make sure our state tends to core priorities, state government should, and can, further tighten its belt in less essential areas, as Oklahoma families are doing. Families sometimes have to do more with less, and the same holds true for state government.”

Bond also said many of the incumbent state legislators whose districts were surveyed by OCPA Impact stepped out together toward the end of the legislative session with a public call for a $5,000 teacher pay raise funded by cost savings. (LINK)

“They should be commended for their efforts,” Bond said. “The concerns from across the state, both of parents of schoolchildren and of taxpayers, did not fall entirely on deaf ears.”